If no payment is received for two consecutive months a termination warning letter is mailed to you and the person you designated as your Protection Against Unintended Lapse (if applicable). If no payment is received within 35 days from the date on this letter, your coverage is terminated retroactively to the last date in which your premiums were paid. If you still wish to have coverage after this occurs, you need to follow the reinstatement procedures described in your Benefit Booklet.
After an account is terminated for non-payment we do not attempt to collect the outstanding amount due at the time of termination. However, if you wish to reinstate and continue with your coverage, you will be expected to pay your back premiums to date.
Payroll or annuity/pension deduction: If we are unable to deduct premium payments from your pay or annuity/pension, after three missed payroll deductions or two missed annuity/pension deductions we will change your payment option to direct bill.
Automatic Bank Withdrawal (ABW): If we are unable to withdraw your premium payment from your bank account, we will attempt one more withdrawal the following month. If the second attempt is rejected we will change your payment option to direct bill.
Direct bill: If you miss a premium payment, the grace period is 30 days. If the payment is received after the bill for the next month has already generated then it will not reflect as paid on the billing statement for the current month.
Protection Against Unintended Lapse
Protection Against Unintended Lapse allows you to specify a third party to notify when your account is about to terminate for non-payment. This third party can be a friend, spouse or whomever you trust to appoint.
The purpose is to give you every opportunity to be notified of the impending lapse in coverage and to make a payment before termination. We strongly recommend you take advantage of this protection.
As a current enrollee, you had the opportunity to designate a third party as your Protection Against Unintended Lapse on the application you submitted for coverage under the FLTCIP. If you would like to change the person you originally designated or if you elected not to designate someone and would like to do so now, call BENEFEDS customer service at 1-877-888-FEDS (1-877-888-3337) TTY 1-877-889-5680.